SummerHill Apartment Communities, a subsidiary of commercial brokerage Marcus & Millichap, sold a stake and raised new financing for an approved 347-unit apartment complex in Santa Clara.
The firm, a multifamily developer that mainly operates in the West Coast, offloaded a $21.3 million stake in 2343 Calle Del Mundo, according to a deed filed with Santa Clara County. The project, which will be built on a 3-acre site in Tasman East, gained approval from Santa Clara’s Architectural Committee in 2019. The deal also covers two parcels at 5211 Lafayette Street and 2323 Calle Del Mundo. The buyer is Lafayette CDM Apartments LLC, which has the same business address as SummerHill and the Dallas office of investment firm Invesco.
The partnership also closed a new $115.8 million construction loan for the project, records show. The lender is BMO Harris Bank.
Plans for the site call for the demolition of three industrial buildings and the construction of a seven-story structure with 275,000 square feet of residential space, according to a project listing on Santa Clara’s website. The project will include a two-story, 141,800-square-foot garage with 396 parking spaces. A 0.4-acre portion of the site will be converted into a city park with a playground and a dog park.
SummerHill has already started construction on the site. According to an earlier report from SF Yimby, demolition work for the project has already been completed.
The project adds to the list of large multifamily communities that are under construction in Tasman East. Related is currently building a 509-unit apartment complex at 2300 Calle De Luna, which is part of its plan to build 1,650 residential units in Santa Clara. St. Anton Communities is also constructing a 196-unit residential compound at 2233 Calle Del Mundo.
Elsewhere in the Bay Area, SummerHill is building a 396-unit apartment complex at 1097 Leigh Avenue and 1792 South Expressway in San Jose.
SummerHill did not respond to a request for comment.